I don't see how it changes the situation. Even if the owner intentionally damaged the phone they would still be entitled to having it repaired for $parts + $labor.
"....but I shouldn't have to pay these exorbitant fees - I didnt drop it in water...."
"Yes you did"
Owners of $1000 phones don't go near water or need cases. They never make mistakes.
</sarcasm>
For one, still not all $1000 phones are waterproof, and second, this can apply to all kind of other devices, like laptops, who can't be or is very difficult to make waterproof without major compromises (e.g. heat dissipation).
Put the phone in a rice bag for 2 days, charged and it's working fine :)